Still too soon to raise tax rates?

Saturday

Jul 13, 2013 at 11:44 PM

My focus today is the County Commission, which has made it clear it doesn't wish to raise its base millage rate.

By Jim RossSenior Editor

This is budget season for local governments.Soon, taxing authorities will set their preliminary millage rates. Once they do, those rates can go down but not up.To figure out the proper millage rates, the governing bodies must figure out how much money they intend to spend. Hence the parade of budget hearings and the tedious, line-by-line spending plan reviews.This all needs to be settled well before Oct. 1, when the fiscal year begins for most governmental entities.My focus today is the County Commission, which has made it clear it doesn't wish to raise its base millage rate."Tax increases … in this economic climate will not be considered acceptable, so you will need to be prepared to come to your budget hearing with a revised budget proposal that keeps your budget (and thus the millage rate) flat, with no tax increase," commission Chairwoman Kathy Bryant wrote to constitutional officers earlier this summer.The first part of that statement deserves a second look."Tax increases ... in this economic climate will not be considered acceptable."That could have been written in 2007, in 2008, and every year since.Does it still ring as true today?The unemployment rate is down significantly from its high of 14 percent.The value of Marion County property is up year over year — not by much, admittedly, but up all the same for the first time in five years.Home construction is up, if mildly. Sales of existing homes are up. The stock market is up.On the other hand, are the newly employed really fully employed? Are they receiving the kinds of salaries and benefits they once did?For years, the low interest rates that have helped home buyers have hurt people who rely on investment income. Right, retirees?Speaking of retirees, the most recent Social Security cost-of-living increase was 1.7 percent, one of the smallest in history.No one wants a higher county millage rate. All county budgets can be parsed for possible savings — yes, even the sheriff's.Like you, I have little desire to spend more on my county tax bill. Like you, I have a great desire to see the county and constitutional officers operate efficiently.Still, government has struggled through the tough times like the rest of us. The county base millage rate has been static for years. Fixed costs like retirement and health insurance are increasing.In light of all that, and in light of our mild recovery, the time has come for the county to consider, if not invite, an increase in the base millage rate.Jim Ross can be reached at 671-6412 or jim.ross@ocala.com. Follow him on Twitter @jimross96.